The Public Service Obligation (PSO) model is part of Ukraine's European integration

The Public Service Obligation (PSO) model is part of Ukraine's European integration

In February 2024, on the website of our partners "Energy-efficient Cities of Ukraine" Association, an analytical review "Obligations for the provision of transport services (PSO model) as part of the European integration of Ukraine" was published. It is the result of a study conducted by the non-governmental organization "Vision Zero". .

The document contains the definition of the PSO model and the implementation of the model in the context of the European integration of Ukraine, describes the working mechanism of the model, the experience of the sectoral implementation of this model in Ukraine, and the conclusions.


photo from "Alltransua" portal, author KT_Alex

What is Public Service Obligation?

In the context of European Union law, a public service obligation is an obligation imposed on an organization by law or contract to provide services of general interest within the EU. Public service obligation (PSO) can operate in any area of public service, but postal services, social services, energy, transport and banking are specific sectors where this model is relevant.

European integration obligations of Ukraine regarding transport legislation

One of the fundamental provisions of the Ukraine-EU Association Agreement is the reform of the transport sector of our country through the introduction of the PSO model in passenger transportation by public transport. Despite this, the harmonization of Ukrainian legislation with European directives in this area is progressing extremely slowly.

The study states that implementation of Ukraine's European integration obligations in the transport sector by the Verkhovna Rada is at the level of 19%, which is one of the worst sectoral indicators. Delaying the introduction of the PSO model in Ukraine hinders the development of public transport and may lead to the destruction of this sector.

Legislative changes to implement PSO

Currently, urban and suburban public passenger transport in Ukraine operates within the framework of three main laws: Law 1914-IV "On Urban Electric Transport", Law 2344-III "On Road Transport" and Law 273/96-VR "On Railway Transport". This hinders the synergy of different types of public transport and their further development.

To implement the provisions of Regulation 1370/2007/EC, which is the legislative basis of the PSO model, the Verkhovna Rada must adopt a number of draft laws. "On city public transport, the implementation of the Regulation is planned by draft law 5149 and several other draft laws that systematically complement it: 5150, 5151, 5152 and 5185." In particular, draft law 5149 provides for the introduction of the PSO model, i.e. a new mechanism for the provision of passenger transportation services, which is considered as a service of general economic interest and for the implementation of which it is necessary to attract funds from the relevant budgets.

"If the politicians of Ukraine will continue to delay the fulfillment of these obligations, this may lead to the further destruction of the public transport sector, to the termination of the activities of transport enterprises and the gradual cessation of the provision of public transport services in hundreds of villages, towns and cities of Ukraine. in turn, will have large-scale social, economic, demographic and political consequences", - summarize the analysts of the NGO "Vision Zero".

You can familiarize yourself with the analytical review in more detail by following the link.